need title insurance if house has had a warranty deed?

Question

Newbie here. I'm looking at a bank-owned house for auction on auction.com. I can see in county records that the last owner got a warranty deed in March of 2017, and then it went back to US Bank with a mortgagee's deed in November 2018. Here are my questions--doesn't the fact that he could get a warranty deed mean the title was clear up until then? Since it just went back to the bank after him, is it not still clear and therefore no need for me to purchase title insurance?

Thank you for any help!

Jill

Thank you for any help!

Jill

Wayne Brooks · Answer

Absolutely not.....a “Warranty” deed just means the seller in the transaction will supposedly cure any problems found later...that doesn’t help you. You absolutely want title insurance and you want to use Your title co to issue it, not the selling lender’s.

A number of things can pop up....some heir from the past had their signature forged, the foreclosing bank missed something in their foreclosure, some legal description error occurred somewhere, etc.

Ned Carey · Answer

@Jill Curran no one will finance the property without title insurance.

Tom Gimer · Answer

@Russell Brazil Did the seller sign the deed with the grantor/grantee error? You may get by with a re-recording rather than corrective.

Jill Curran · Answer

All good info. Thank you!

Stanley Bronstein · Answer

@Jill Curran I highly recommend you get the title insurance. The fact there was a warranty deed in the previous chain of title doesn't necessarily mean a thing.

Russell Brazil · Answer

Good question, and Im not sure as to a lot of the specifics. My eyes always gloss over when you attorney start telling me about the title problems. I know a seperation agreement was recorded with the deed showing what was the correct way it should have been filed. Im sure title will fix it one way or another. Or maybe close w exception to this error and I can force a reduction in price over the issue.

Jill Curran · Answer

Hence the term "insurance." I'm convinced. Thank you!

Brian Ploszay · Answer

Good question.

1. Once the property is foreclosed on, the title gets wiped clean. Usually.

2. If you are buying this on auction.com, the transaction will usually includes title insurance. A title company does more than just provide title insurance, but they facilitate the transaction.

Get used to buying properties with title insurance, even when you think you don't need it.

Here's an example of what can go wrong with your property: The bank didn't pay a vendor and the vendor files a lien on the property after you bought it. The bank did not pay a broker properly and you get a lien. The city had some unpaid vendor bills when the property was abandoned and you get a lien. Mistakes were made with the foreclosure case or the deed transfer. You're covered with title insurance.

Jill Curran · Answer

Will do. Thank you all!

need title insurance if house has had a warranty deed?

need title insurance if house has had a warranty deed?

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